5 September 2017
Labor fails to rule out increase in gold royalty
State Member for Kalgoorlie, Kyran O’Donnell has warned Goldfields residents to prepare for an increase in the gold royalty, after the Minister for Mines and Energy refused in Parliament to rule out an increase.
Mr O’Donnell said it was disappointing the Minister refused to rule out an increase in the gold royalty and his failure to do so meant the Government was preparing to announce an increase on Thursday to pay for their unfunded and unaffordable election promises.
“It was not a difficult question asked of the Minister. I simply asked him to rule out an increase in the gold royalty, and he wouldn’t.
“Labor knows an increase in the gold royalty is not good policy. As they themselves claimed in 2014, an increase in the gold royalty will result in mine closures and it will cost jobs.”
“In 2015 Mr McGowan promised the gold sector there would be no increase in the gold royalty rate under a Labor government. But today, his own Minister would not confirm this commitment by ruling out an increase.
“What is concerning is that if the Government goes ahead and increases the gold royalty, Western Australians will receive little of the revenue due to the GST distribution formula.”
Mr O’Donnell said in October 2015, Mr McGowan claimed the GST distribution formula ultimately meant increasing gold royalties would provide minimal benefit to the State on the basis that for every dollar Western Australia would receive in gold royalties, 90 cents would be lost in GST.
“Goldfields residents will be impacted more than any other region if the gold royalty is increased.
“It would be a terrible act of betrayal if the McGowan Government increases the royalty in Thursday’s budget, particularly given everything Labor said when they were in Opposition.”
“It will show a disdain for the Goldfields by the McGowan Government if the gold royalty is increased.”